Monday, December 15, 2008

Prescriptions for a New Economy

It is interesting to see how, in crisis times, everybody has the right prescription to heal the economy.

"Build to order should be the distinguishing specialty of the North American car industry which is located in the heart of the world's greatest car market. You should be able to get the exact car you design on the Web within a week of placing your order. There's no way in the world that overseas manufacturers could compete with that." Tom Evslin.

A little bit on the dreaming side, I guess.
We are so used to translate from the real world to the virtual, that we REALLY believe it is possible to do the opposite.
And then:
"Dealer inventories will shrink down to one of each kind that you can test drive on your way to placing an order. Dealers would be able to deleverage their own balance sheets without the requirement to finance huge lots of new cars or the lots themselves (not sure what we do with all the real estate along our state highways once it isn't full of new cars). Manufacturers won't have to carry finished product inventory either. "
I really thought the big problem in the car industry was the eventual huge number of unemployed people...What if it doesn't work?
What if people do not want, do not trust American cars?
What if people prefer Japanese or European cars?
And of course, tailored car means more expensive (or somebody knows how to make it cheaper?)
It would work if people were there ready to work when needed.
But people eat everyday and their families too.
The rent (or mortgage) comes once a month.
And if they are not needed for six months?
And if you need double the next six months?

"There's no way in the world that overseas manufacturers could compete with that. "
You are wrong, I guess Ferrari can do it, but do not look at prices...They are not what you would define "mass market products".
The others,You can bet, they wouldn't even try.
"Personally, I think we need cars more than banks."
Yes, that is a possibility.
But it all depends on the number.
We need one car and not three.
As for the Banks, I think we need them too.
What we do not need is THIS KIND of Banks.
As much as we need honest, working people and not criminals, we need Banks we can trust, where we put our hard saved money, we can have a small interest on it and we can have BACK our money when we need it.
Once ALL this looked so natural and easy.
Now it is a dream.
Where is our past?
Where is our present?
Where is our future?
What we need is not new roads, we need SAFE roads.

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